DETROIT (WXYZ) — It took more than 10 years for the feds to get wind of one of the largest alleged embezzlement schemes in Detroit’s history, but there are signs it won’t take long for the man at the center of the case to plead guilty.
William Smith, the former chief financial officer of the Detroit Riverfront Conservancy, was accused of embezzling nearly $40 million from the nonprofit dating back to 2012.
Previous coverage: Detroit Riverfront Conservancy files lawsuit against CFO, 3 family members over alleged $40M embezzlement
Now, a plea hearing in the case was scheduled for Oct. 21, less than five months since Smith was accused of spending millions of conservancy funds on himself and family.
“This definitely went at a breakneck speed. I can only conclude that the evidence was really extremely overwhelming from the get-go,” said Anjali Prasad, a former assistant U.S. attorney who today is a criminal defense attorney.
“You’re talking about a 12-year conspiracy, so I’m thinking once the feds uncovered the conspiracy, the evidence literally fell into their lap,” she said.
Previous coverage: Ex-Detroit Riverfront Conservancy CFO charged with embezzling $40M dating back to 2012
In a filing that usually signals a defendant is ready to plead guilty, the feds say Smith used nearly $15 million in conservancy funds to pay off American Express charges accrued over 12 years.
The feds say he used the embezzled funds to buy real estate, furniture, clothing, designer handbags, lawn care, airline tickets and more, all allegedly enjoyed by Smith and his family.
While none of his relatives have been formally accused of any crimes, Prasad says the feds were likely able to secure a guilty plea so quickly because of them.
“It doesn’t take long for the federal government to hint at investigating other family members, not because they necessarily want to but because again, they want to incentivize the defendant at the table to plead guilty,” Prasad said.
“My guess is that very much played into his decision.”
If Smith pleads guilty next month as expected, Prasad says a lengthy prison sentence is all but a guarantee.
“The reality is that $15 million that they agreed upon is really, really going to result in a high guideline range,” she said.
If convicted, Smith could be sentenced up to two years in prison and faces fines of up to $500,000.
Contact 7 Investigator Ross Jones at ross.jones@wxyz.com or at (248) 827-9466.